Good morning. U.S. equity markets are set to open slight lower this Friday, following a continued strong rebound Thursday, with the S&P 500 notching its third straight daily gain of over 1.5%. Investors rotated into growth and tech, led by a surge in semiconductors and heavy buying in the Magnificent 7. While policy clarity remains elusive, earnings have begun to steal the spotlight, particularly after Alphabet's stronger-than-expected report last night, which lifted sentiment around tech and AI-related names.

Policy headlines remained somewhat quieter, but lingering uncertainty continues to influence investor psychology. Rumors of progress in trade talks, walk-backs of tariff threats, and a softening of rhetoric around the Fed have helped calm markets, but China’s demand for full tariff repeal could still complicate matters. Meanwhile, economic data remains broadly supportive: jobless claims remain low, durable goods orders surged in March, and earnings growth continues to beat expectations.

Earnings Paint Mixed Picture as Tariff Cloud Hangs Over Outlooks
WSJ reports that while many S&P 500 companies are beating estimates, executives continue to highlight margin pressure from ongoing tariff uncertainty.
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Trump’s First 100 Days: A Presidency Reshaped by Tariffs and Fed Tension
Charts and analysis from WSJ track how President Trump’s second-term agenda has reshaped markets through tariff escalation and challenges to the Fed.
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Housing Market Hits a Wall as Listings Build
MarketWatch explores how higher borrowing costs and economic uncertainty are leading to sluggish home sales and rising inventory.
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S&P 500 Rally Hinges on Powell-Preserved Independence and Tariff Pause
The recent market rebound followed Trump’s softened tone toward Powell and hints of tariff de-escalation, MarketWatch reports.
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China Calls for End to Unilateral Tariffs
CNBC reports that China is refusing to engage in new trade talks with the U.S. unless all existing tariffs are canceled.
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Beijing Preparing Emergency Measures Amid Ongoing Trade War
Bloomberg notes that China is readying policy tools to support its economy as the trade war deepens.
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Stocks finished sharply higher Thursday, with the S&P 500 gaining over 1.8%—its third straight session of +1.5% moves—as investor focus shifted to strong earnings results and easing concern over U.S. trade and monetary policy. Ten of eleven S&P sectors posted gains, with tech leading the charge behind 5%+ moves in semis and 2%+ in megacaps like Amazon, Meta, Microsoft, and Tesla. Alphabet reports after the close today, and its AI and cloud guidance will be closely watched.

Economic data showed continued strength: March durable goods orders rose a stunning 9.2%, fueled by aircraft and defense orders, while weekly jobless claims remained historically low at 222,000. Treasury yields eased, with the 10-year falling to 4.31%, and gold rallied on renewed concerns around U.S.-China negotiations.

Markets have surged back from their April lows, driven by easing policy tension and a better-than-expected start to earnings season. Still, geopolitical and trade risks remain potent, and the Fed remains on hold. With strong internals, a resilient labor market, and moderating inflation, conditions are still constructive—but a data- and headline-driven environment persists.